Key indices edged higher in early trade amid mixed Asian stocks and record close for US stocks overnight. At 9:20 IST, the barometer index, the S&P BSE Sensex, gained 72.59 points or 0.22% at 33,674.27. The Nifty 50 index rose 25.30 points or 0.24% at 10,414.05. Realty and auto stocks gained.
The S&P BSE Mid-Cap index rose 0.44%. The S&P BSE Small-Cap index gained 0.72%. Both these indices outperformed the Sensex.
The breadth, indicating the overall health of the market, was very strong. On the BSE, 1,085 shares rose and 251 shares fell. A total of 53 shares were unchanged.
Bharti Airtel declined 0.46%. The company said that through its subsidiaries it has entered into a definitive agreement with Millicom International Cellular S. A. under which Airtel Rwanda will acquire 100% equity interest in Tigo Rwanda. The acquisition will consolidate the Rwandan telecom market and position Airtel as a strong number 2 operator in Rwanda. The announcement was made before market hours today, 19 December 2017.
Bank of Baroda gained 1.86% after the company said that its board will meet on 22 December 2017, to consider a proposal to approve raising of additional capital funds in domestic / overseas markets eligible to be reckoned as BASEL-III Compliant Additional Tier-I (AT-I) Capital. It will be over and above Rs 3000 crore already approved by the board at its meeting held on 27 May 2017. The announcement was made after market hours yesterday, 18 December 2017.
HDFC declined 0.32%. The company said that it will raise Rs 2000 crore by issuing debt securities on private placement basis. The 7.55% HDFC, 20 February 2019 secured redeemable non-convertible debentures will be issued on a private placement basis, HDFC said in a regulatory filing. The object of the issue is to augment the long-term resources of the corporation. The proceeds of the present issue would be utilised for financing/refinancing the housing finance business requirements of the Corporation, it said. The issue will open on 20 December 2017 and closes the same day. The announcement was made after market hours yesterday, 18 December 2017.
Dr Reddy's Laboratories gained 0.72% after the company's US subsidiary announced that it has reached a settlement with the US government, in a case that is more than six years old, involving packaging for the five blister packed prescription products. In a joint filing by the parties, the company and US Department of Justice agreed to the settlement of the action without any adjudication of any issue of fact or law. The announcement was made before market hours today, 19 December 2017.
Overseas, Asian stocks were mixed. Japan's government revised up its growth projections for the current and next fiscal years, forecasting the economy to expand 1.9% and 1.8% respectively on the back of steady improvement in domestic demand, the Cabinet Office said.
US stocks closed at all-time highs yesterday, 18 December 2017, as investors eagerly awaited a vote on a bill that would cut corporate taxes. A slew of corporate deals also helped lift sentiment.
Congress is expected to vote as early as today, 19 December 2017, on a plan that would slash the federal corporate tax rate to 21% from 35%. Passing the bill would mark a big legislative win for Republicans, who have been pushing to revamp the US tax code for most of 2017.
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